Which items are typically considered tangible assets?

Which items are typically considered tangible assets?

• A. Intangible assets
• B. Land, land improvements, buildings, equipment, and natural resources
• C. Patents and trademarks
• D. Current assets

Answer: (B)

Tangible assets are physical items a company uses in its operations. The collection that includes land, land improvements, buildings, equipment, and natural resources fits this definition because each item has physical substance you can touch and see. These assets are typically recorded at cost on the balance sheet and are depreciated over their useful lives (except land, which is not depreciated). In contrast, intangible assets like patents and trademarks lack physical form, so they’re not tangible. Current assets is a broad category that can include both tangible and intangible items (for example, inventory is tangible, while cash is not). Because the question asks for items that are typically tangible, the list above is the best fit.

Tangible assets are physical items a company uses in its operations. The collection that includes land, land improvements, buildings, equipment, and natural resources fits this definition because each item has physical substance you can touch and see. These assets are typically recorded at cost on the balance sheet and are depreciated over their useful lives (except land, which is not depreciated). In contrast, intangible assets like patents and trademarks lack physical form, so they’re not tangible. Current assets is a broad category that can include both tangible and intangible items (for example, inventory is tangible, while cash is not). Because the question asks for items that are typically tangible, the list above is the best fit.